Workers have something to rejoice, as the union cabinet has reportedly decided to double the wage ceiling to Rs 7,000 per month for calculating bonus to people working in organisations having 20 or more employees.

"The Payment of Bonus (Amendment) Bill, 2015 to enhance the monthly bonus calculation ceiling to Rs 7,000 per month from existing Rs 3,500 was approved by Union Cabinet here," a source told PTI.

The Bill also has a provision to increase the eligibility limit for payment of bonus from the salary or wage of an employee from Rs 10,000 per month to Rs 21,000.

The government wants the changes to be effective from 1 April, 2015 and the amendment bill will be placed before the Parliament for approval.

The move comes in the wake of a one-day strike carried out by 10 central trade unions on 2 September. The government had assured them to revise the wage ceiling and bonus calculation ceiling.

The Central government is empowered to revise the ceiling for monthly bonus calculation under Section 12 of The Payment of Bonus Act 1965, which is applicable to every factory or establishment with 20 or more employee on any day during a financial year.

Earlier, the amendment to the eligibility limit for payment of bonus and the calculation ceilings was done in 2007, which became effective from 1 April, 2006.